Which of the following method of financing the fiscal deficit is likely to lead to an increase in inflation?
A. Government borrowing financed by commercial banks.
B. Government borrowing financed by the central bank.
C. None of the two alternatives here.
The implementation of minimum wage legislation in a labour surplus country such as India goes against the theory of comparative advantage. Is this statement true or false?
Which of the following is true in an economy that is constrained due to the shortage of demand?
A. Saving leads to investment.
B. Investment leads to saving